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Rock Street, San Francisco

“A few mice did get inside one restaurant from the outside due to a small structural gap in the building,” Chipotle Mexican Grill (CMG) spokeswoman Quinn Kelsey said Thursday.  “Management immediately removed them, and the gap has been repaired.”
Diners took video of the mice skittering through the restaurant on Tuesday.
The stock was down 4.5% on Thursday and Chipotle (CMG)’s share price has dropped about 10% over the last five trading days.
“We’ve been in touch with our guests to offer our sincere apologies,” Kelsey said. “This is an extremely isolated incident, but of course it’s not anything we’d ever want our guests to encounter.

It’s all fun and games til it happens to you. Everyone thinks it can’t happen to them until it’s too late. It’s just sad that a company had to suffer financially from these little Nazis. That’s something you don’t learn in business school. You never learn about the effect of mice on a stock. Its tough to factor in rodents into the CAPM formula. It’s tricky to find the efficient frontier of mouse shit. This is another example of investors trading off of fear, and not logic. This is how markets crash. We’re in a mouse bubble, and I’m the first to see it.

Most investors see mice as a sign to sell. Not me. I consider myself a non-traditional investor. I only like to invest in a couple industries: T-shirts, future internet juggernauts, and carbs. I’m not an expert in food industry (I did work at a Papa Ginos for a year and a half), but I am a bit of an expert in mice. Mice can make or break a company. In some cases, like my own, mice can take a company to the top, but they have to be utilized correctly. I took a couple mice in my wall and turned them into assets. Textbook case of talent recognition. Management 101. I see opportunity. I see uncapped growth. I built a business on the backs of the mice in my wall. I think Chipotle has the potential to do the same.

In Chipotle’s case, they’re at a crossroads. I did an International Business project on Chipotle Sophomore year, and got a B+, so I’m pretty well versed in the company. The thing they’re doing wrong, is that they’re apologizing, and saying that the mice were an isolated incident. Wrong. Mice are never an isolated incident. You think you have 1, you really have 20. Mouse hunting 101. Never apologize.

If I’m running that burrito factory, I’m wearing this like a medal. I’m changing my slogan. “Chipotle Mexican Grill, where the mice are free but the Guac costs extra”. Or “There are two things that mice know, The Black Plague and great burritos”. It’s called marketing. Control the story before it controls you.

So while all those fancy analysts at Goldman and Morgan Stanley are pressing the sell button, I’m just getting ready to buy low and sell high. At what point does being three steps ahead get old? I don’t think it ever will. Peter Pan Mentality.

PS: Maybe just leave the mice alone? Rodents like double steak, too. 


Post Author: timmccue191

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